Cut Costs for Your eCommerce Business Without Cutting Quality – MoneyMagpie

Annie



3rd Jun 2024

Reading Time: 6 minutes

If you want to make money selling online, it’s important to look at how to cut costs for your eCommerce business expenses – but not cut any corners. The online marketplace is incredibly competitive, but quality matters as much as price. That’s why we’ve come up with a number of ways you can cut expenses in running an online shop or service without reducing the level of quality you serve customers.

dropshipping eCommerce businesses lately, they take away the personalised aspect which can put customers off. You don’t have oversight of parcels as they are packed and delivered, and you can’t do things like add branded cardboard boxes or inserts into packages to promote deals.

Finally, if you rent storage space for your inventory, negotiate! Ask if you can have an introductory discount or if you can get a reduction for paying a few months up-front. Some places will also do referral fees so you could even discuss putting an affiliate link on your website to encourage signups.

of the size and weight you need to ship.

new online shop owner, that will save you a lot of cash in the long term if you put automated processes in place.

You might not be able to automate everything, but being aware of how to manage your accounts well is another way to save time and money. Rather than spending on accountant fees, learning more about Making Tax Digital for businesses and what software you need to manage accounts will save a lot of time – and therefore money – in filing for your taxes!

Negotiate Supplier and Shipping Costs

If you use a local courier, talk to them to see how much you can negotiate on your shipping prices. You’d be surprised how much you could save!

Suppliers are also where you can cut costs for your eCommerce business. Bulk buying is one way to do it – but if you don’t have the storage space, don’t worry! Talk to suppliers to see if you can commit to buying a certain amount to achieve a discount, but receive the items in spread out shipments. This saves on your storage space while helping you take advantage of per-unit discounts.

Invest in Customer Retention

This one might feel a bit backwards, but stick with us on this. Investing in your customer service as you launch your eCommerce business is one of the best ways to cut costs in the long-term.

Customer retention could be as simple as printing package inserts with unique discount codes to thank them for their purchase, offering a discount on their next purchase. Or, as outlined above, sending thank-you emails after their item has been delivered. If you have a technical item, including user guides either as printed inserts or in an email will improve customer satisfaction, too.

 

 

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.